I am scared to sell anymore on Ebay given these stories. How can you protect yourself if you are selling a high priced item?
The cases that the seller does want a return, you really can't say no. I usually just say yes, I can process a return, but can you explain what is wrong with the item? Maybe we can walk through it before processing a full return. Usually you can get away with compensating them something since no one wants to go through the hassle of the return.
I also make sure I tell them to ship with signature confirmation and tracking. Since I offer "free shipping", that means they would have to eat all the costs when they return the item. More often than not, it's not worth the hassle for them.
After hundreds of sales, I would say there are definitely some complications, but more often than not it's fine. It's one of the risks you have to consider when selling.
There really is a hole in the market for goods in this price bracket.
I would almost want some Ebay certified place that could verify the item and act as an escrow.
I'm sure I could have gotten more with a private sale but then there's the risk and the hassle. (I live far enough outside of the nearest major city that Craigslist doesn't really work for me in general.)